(News Bulletin 247) – Berenberg announced on Wednesday that it had downgraded its recommendation on Tesla, reduced from ‘buy’ to ‘hold’, with an adjusted price target of 200 to 210 dollars.

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In a research note, the middleman backs up his downgrade with the fact that his buy-on-value thesis – which he believed was based on the misguided bet of a brewing price war – is now largely endorsed by the market.

“We assumed that Tesla could still gain market share with a gross margin of around 25% (…), a prospect that investors now seem to be integrating by 2025,” he continues.

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Berenberg mainly justifies its downgrading by an upward potential considered much more limited knowing that the title has recovered 21% since its recommendation increase on the action, which dated from January.

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